Latest Fuel News

Confused motorists were steering clear of Olympic lanes this week – even though they don’t come into force for the next 9 days.

Thousands of cars could be seen diverting away from the VIP-only “Games lanes” – fearing a £130 fine – as confusion spread about their operation.

The only Olympic lane to come into force today was on the M4 from Heathrow into central London, with the former M4 bus lane reserved for athletes and 2012 dignitaries.

A Transport for London spokesman said: “The M4 is flowing well today and central London traffic is down by 10 per cent, showing people have heeded our message not to drive in central London.”

But on main roads across the capital already painted with the Olympic rings logo, designating them as Games lanes, drivers were seen cutting into the middle lane — causing bottlenecks in the process.

This was happening on roads such as the A4 – while on the A40 Marylebone Road, the Games lane was empty of vehicles, causing congestion in the “normal” lane.

All Games lanes except that on the M4 remain open to all traffic until July 25 – two days before the opening ceremony – in a bid to minimise disruption to motorists.

Eltham MP Clive Efford called for leniency after raising the fines issue with Met Police Commissioner Bernard Hogan-Howe last week.

The police chief insisted there would be tough enforcement. “ People have to respect the lanes,” Mr Efford said. “But when the enforcement comes in, they [police] have got to look at the circumstances and if it’s a simple mistake, then I think they should look at it favourably.”

Some drivers said the lane system was so poorly signposted it was causing confusion and tailbacks, especially on access roads to the motorway.

Max Oppenheim, 40, a hedge fund manager from Chiswick, said: “I have been past it three times and only noticed the sign saying ‘ Olympic Lanes’ once.

“It is causing a bottleneck at the access after Hogarth roundabout, as when you come off, people are instantly cutting in from the right lane to avoid it.

“I effectively got T-boned. You can’t see it from a hundred yards back. There needs to be more clarity”.

However, Pedro Cintra, 40, who works for a media company, said: “ The road is fine, the Olympic Lane made no difference. The traffic was no worse than usual.”

Van driver Phil Roberts, 30, said: “The M4 was okay and the traffic was better than last week when it was closed. I wasn’t aware of the lane though and didn’t see the signs.”

The M4 lane can, in theory, operate between 5am and 10pm but will be activated based on demand.

It stretches along 3.5 miles of the eastbound M4 between junctions 3 and 2 —  the route of the former M4 bus lane which was abolished by the Coalition government. All other motorists are banned from the lane during operating hours but licensed taxi drivers are exempt.

Vehicles of 7.5 tonnes-plus are banned from the M4 link during ongoing repairs to the damaged Boston Manor flyover and are being diverted along the A4. But official Olympic coaches and buses are exempt from the ban.

Elsewhere in the capital jams have formed on roads as motorists avoid the lanes marked with the Olympic rings — even though most of the restrictions will not be activated until 6am on Wednesday 25 July.

Traffic has built up on an eastbound stretch of the North Circular near Wembley as three lanes of traffic converge into two. Motorists claimed a sign saying the Olympic lane was not in use was not clearly visible.

In other news, Stuck in a traffic jam for five and a half days !

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The Transport Minister is considering whether to increase fixed penalty fines for motoring offences such as speeding and also the introduction of greater punishments for more serious offences such as dangerous driving.
The current £60 fixed penalty charge for less serious motoring offences could rise to £90 in order to act as more of a deterrent to motorists, but speeding is not the only offence that could be punished by a fixed penalty.

Other motoring offences that are not currently punished with a fixed penalty such as “tail-gating”, erratic braking or undertaking another vehicle could in future be treated in the same way as speeding offences.
For more serious offences such as driving without insurance, which currently incurs a £200 fine, it is proposed that this is increased by 50% to reflect the relative seriousness of this offence.

The current levels of penalty fines were set in 2000 and there is a view that with no adjustment having been made for inflation, the severity of the punishment has actually diminished over time and may require revision. With motoring costs such as car insurance and fuel prices proving to be a heavy burden for all motorists in tough times, proposed increases in fixed penalty charges may not be well received.

In other news, Fleets Drivers are warned about Police clampdown on drink driving.

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Hard-pressed Motorists, Fleet Companies and Transport Companies in Bradford district are facing more “crippling” hikes in the cost of fuel as petrol prices reached an all-time high.

Shipley Tory MP Philip Davies is now calling on Chancellor George Osborne to cut fuel duty on drivers in his budget later this month.

Mr Davies said: “Fuel duty is too high and the fact that we have got the highest tax on fuel in the European Union highlights that.

“George Osborne reduced tax on fuel in the last budget and I hope he will be able to do it again.”

Sixty per cent of the price of unleaded petrol and 58 per cent of the cost of diesel is made up of duties and VAT in Britain, the highest percentages in the European Union, according to figures obtained by Mr Davies.

He said: “High tax on petrol affects everybody. It puts up prices at the supermarkets and when people fill up their cars, they see how unaffordable petrol is becoming.

“I cannot emphasis enough how tough it is at the moment anyway for businesses but for Haulage Companies, Fleet Companies and others that rely on transport, there is this huge tax that they have to operate under and it is crippling.”

Graham Bailey, the owner of Bingley-based company GB European, has a fleet of driver-owned vans which deliver across Europe. He said increasing fuel prices in the UK made it more difficult to compete with foreign competition.

Mr Bailey said: “I will tell one of the owner-drivers the price of a job and they say I need to put the price up because of the cost of fuel. I can’t do that because customers will just not come to us, we will just not be able to compete.”

Zulfiqar Ali, a driver for Crown Taxis in Keighley, warned that even more increases will lead to taxi companies closing.

Mr Ali, 42, said: “It is just going to make things worse for people who depend on driving like us and lorry drivers. There is going to come a time when they are making no profit and then there is no point in carrying on.

“The way things are going at the moment, I think we are all going to have to pack it in. It is ridiculous.”

His colleague Tariq Aziz, 34, said: “We have to put our fares up when there is a rise in fuel. If it keeps going up, it will make taxis unaffordable.”

Kate Gibbs, a spokesman for the Road Haulage Association, which has an office in Cleckheaton, said: “The knock-on effect of fuel costs for Hauliers is absolutely massive. They are already operating on the tightest possible margins and rising prices mean that people are really struggling.”

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On April 1 the bands for company car tax bands will change. This means the majority of Fleet Companies and Company Car Drivers will have to pay more Benefit-in-Kind tax. However, some will take a bigger hit than others since some of the bands see a far more dramatic change.

The cars suffering the most are those emitting between 115g/km and 120g/km of CO2. This year drivers of petrol cars will be in for a 10% charge, but after April 1 this will shoot up to a 14% charge. Diesel cars see the same percentage hike from 13% to 17%.

As an example, let’s study the Volkswagen Golf 1.6 TDi Match 5dr. This car emits 119g/km of CO2, placing it in the area worst affected by the band hike. Its P11d value is £19,840.

For this tax year Benefit-in-Kind tax is payable at 13%, which means £43 per month on the 20% pay scale. However, after April 1 the Benefit-in-Kind taxation will rise to 17%. This pushes the cost up to £56 per month, which is an extra £156 per year or £468 over a three year lease. When you look at it like that it really isn’t cheap.

For the most part, choosing a car emitting a lot more is likely to mean an increase of 1%.

With a P11d value of £30,920 and company car tax payable in the 30% band this year, you’re looking at a monthly cost of £309 on the 40% pay scale. This will rise to 31% next year, which works out to £319 or an extra £10 per month. Over a three year lease this means an extra £360.

However, choosing cars with under 99g/km of CO2 is a sensible choice. You won’t see any tax increase after April 1, and the next year you’ll only see a 1% increase if your car emits between 95 and 99g/km. So using our example of the Volkswagen Golf, choosing the 99g/km 1.6 TDi BlueMotion is certainly the way to go to keep your tax bills down.

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Fleet drivers are at the coal face of road safety. Whether you drive a 38 ton truck or a pizza delivery bike, you make the difference between life and death on our roads. About one in three deaths on roads involves a vehicle being driven for work purposes and more involve people driving to and from work.

Commercial Fleet drivers and other workers that drive as part of their job will be reminded to ‘Wake Up For Work’ this spring in a bid to cut the ammount of people killed by drivers dosing off.

Figures from DfT reveal that 300 people die every year as a result of drivers falling asleep at the wheel with commercial vehicle drivers playing a part in 40% of tiredness related crashes, however ‘Wake Up For Work’ day – organised by road safety charity Brake – will aim to change that.

As part of the event, participating organisations will urge staff to donate £1 to Brake and wear their pyjamas at work to promote the importance of taking regular breaks whilst driving and getting enough shut-eye before long journeys.

Brake will encourage businesses to hold a ‘Wake Up For Work’ day on 23 March, ahead of the clocks going forward, and 20 June to coincide with the summer solstice.

“Running a Wake Up For Work day is a fantastic way to support our crucial work with families bereaved by road crashes,” said Brake spokesperson Martin Howard.

“I’d encourage all organisations to get involved now – sign up to run your Wake Up For Work day this spring, to help save lives and raise vital funds for charity.”

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Road Safety Week 2012 will take place from November 19-25 and the charity Brake, which coordinates the event, is encouraging companies, especially fleet operators, to start planning how they will take advantage of the event to promote safe driving to staff and show their dedication to road safety in the wider community.

Companies can log onto the Road Safety Week web page to get ideas and register to receive free resources to help them take part.

Road Safety Week, now in its 16th year, is a great time to run training or awareness-raising activities for workers to promote a safe driving culture, or launch new policies and initiatives aimed at minimizing crashes or promoting sustainable travel.

Every year Brake picks a theme to focus on through its Road Safety Week media campaign. Companies can choose to run their initiative on this or any other road safety topic.

Brake’s main theme for 2012 is ‘Slower speeds = happy people’. Through national and regional media, Brake will be raising awareness of the importance of making it safer for people to walk and cycle in their own community, to get to work or school, and for their health and enjoyment.

Brake will be calling on drivers to slow down to 20mph around homes, schools and shops, explaining that it’s a life-saver because it gives you a good chance of stopping in time in an emergency.

Brake is also urging companies with staff who drive for work to make use of low-cost guidance from Brake’s Fleet Safety Forum in the run up to the week to develop year-round fleet safety practices.

Brake deputy chief executive Julie Townsend said: “Companies can play an important role in making our roads safer, raising awareness among staff, customers and contacts about safe driving, implementing ambitious fleet safety practices, and engaging the community.

“Road Safety Week is an chance for companies to focus attention on this vital social issue and speak out about the big difference we can all make in preventing needless accidents and creating greener, safer communities.

“Each year many companies make a tremendous impact by getting the road safety message across during the Week, often gaining valuable publicity at the same time.

“The Road Safety Week website is full of ideas on how to get involved: log on now to register for an e-action pack and start thinking about how you’ll get involved to help save lives.”

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The Freight Transport Association (FTA) has called on the Chancellor to cut fuel duty by at least five pence per litre and scrap the increase planned for August.

In its pre-Budget submission to the Treasury, the leading trade body argues that such action could save fleet customers and fleet businesses £3.6 billion and prove to be a vital shot in the arm for the UK’s ailing economy.

Following sustained and concerted lobbying by FTA and its partners in the Fair Fuel UK campaign, the last Budget saw two planned increases in fuel duty deferred and an unprecedented cut in fuel duty of 1ppl, a move which saved businesses some £500 million. However, despite this the price of diesel increased by 7ppl in 2011.

James Hookham, FTA’s MD of Policy and Communications, said: “Never mind quantitative easing, cutting the still-disproportionately high amount we spend on diesel, which is, after all, a fleet business essential, would be a simple and effective way to stimulate the economy.

“The billions that industry and consumers will save over a year would be invested elsewhere in the economy, giving the impetus to growth that is so badly needed.

“George Osborne gave industry a lifeline in the last budget, but with the economy still in the doldrums and a new round of duty rises looming, we are asking the Chancellor to extend this logic further for the sake of businesses, consumers and UK plc. It is clear that the economy still needs it.”

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There is no escaping that everyone is feeling the pain of the recent VAT and fuel duty increases. With January frequently being a ‘slow’ trading month many managers and business owners have expressed concern; the full impact has not yet been felt,  as it is difficult to calculate the actual impact during a generally unpredictable month.

UK businesses are currently feeling pressure unlike ever before, not only have both VAT and fuel duty increased but the adverse weather conditions experienced during December also had a grave impact on the health of many businesses.

Additional concern was echoed across industries for the small business owner; the Federation of Small Businesses has allegedly said that the planned increase in fuel duty will impact smaller firms more than others.

What can the small business owner do to help prevent the cost of fuel having a grave impact on their business?

A few simple motoring changes can help tackle the fuel price increases, there are many things to consider; three easy ideas are:

Firstly, it is vital to look after your vehicle; this will ensure fuel efficiency is maximized.

Secondly, try and plan your journey, by taking the most fuel efficient route you may save you a few pennies in the long run

Finally for those who make regular journeys a fuel card could also be of help. Fuel cards are generally aimed at people/businesses who spend over £250.00 per month on fuel. A fuel card works similar to a credit card; you purchase your fuel and receive an invoice on your agreed term. A fuel card can often offer you price guarantees too, so forecasting your fuel expenditure becomes simpler.

The repercussions of higher fuel prices will not just stop at business level; eventually consumers will notice the price of their weekly shop rise and their transport to and from the supermarket adding to the bill. Consumers won’t be able to avoid this by shopping online either, as the price of fuel rises so will the delivery charge.

The probability that the UK economy may better during the rest of 2012 looks slim, even the most successful of entrepreneurs are feeling the pinch!

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Fuel campaigners have warned the Treasury to expect 50 days of opposition ahead of a planned April tax rise on sustainable biodiesel made from used cooking oil.

They say the Government’s decision will leave thousands of professional drivers and fleet vehicle companies – including cabbies all over the country, out of pocket.

Campaigners are warning that the decision will make UCO biodiesel production uneconomic, and will force fleets and independent drivers to either absorb the additional cost or convert back to fossil fuels – leading to higher carbon emissions, millions of litres of used cooking oil being completely wasted, and thousands of job losses from biodiesel producers, suppliers and consumers.

The Treasury will apply the 20 pence tax increase on UCO biodiesel from midnight on April 1 to implement a decision announced by Chancellor George Osborne during the 2011 Budget.

This decision involves raising taxes on UCO biodiesel whilst offering double certificates under the Department for Transport’s complicated Renewable Transport Fuels Obligation (RTFO).

Campaigners have claimed that there is insufficient evidence to show that the replacement of the differential with RTFO certificates will sustain the industry – pointing instead to market prices that show certificates trading for half the differential price and the fact that the RTFO does not support high blend users such as HGVs and taxis.

They have called on the Chancellor to defer the removal of the differential to allow a proper assessment of the consequences to be made and to consider how the £8m committed to by the Treasury in the Autumn Statement for investment in low emission technologies for HGVs could be used to support already proven technology.

Tracey O’Keefe, director of the UK Sustainable Biodiesel Alliance and Co-ordinator of the Save our Sustainable Biodiesel Campaign, said: “At a moment when the Government is desperately looking for any kind of economic growth, the Chancellor is driving a thriving UK industry off a cliff.

“The tax differential has proved to be tremendously effective, yet the Treasury is undermining years of good work by needlessly putting hardworking firms out of business. This is hardly in keeping with the ‘year of enterprise’ that the Prime Minister has said he wishes to see.

“We’ll be campaigning up until the clock strikes midnight on 1 April. It is a reasonable request that a decision of this importance should be backed up with sufficient evidence. The Treasury doesn’t have it and with only 50 days left I hope they realise the flaws in their plan before it’s too late.”

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